TEXAS SAE: REAL ESTATE APPRAISAL EXAM
REVIEW
A Mortgage Banker gets paid fees from originating and serving loans. - Answers -
Conformity - Answers - Conformity says that value is created and maintained when the
characteristics of a property fit in with its surroundings.
A professional, on-site measurement of the lot lines and dimensions of a property is
known as a survey. - Answers - A survey includes the location of any improvements,
encroachments, and easements of public records.
Which element of a valid contract is established by getting the signatures of all parties?
- Answers - Offer and Acceptance. The signatures of the parties guarantees that they all
understand and agree to the terms of the contract.
In the early 2000's, before the 2007 financial crisis, how would you characterize the real
estate market? - Answers - Low interest rates and high property values. In the late
1990s and early 2000s, mortgage interest rates were low and property values were
high.
Burlingame Property Management sends a monthly earnings report to owner Juliann.
What is true of this report? - Answers - It should be accompanied by a personal note. A
note with the monthly earnings report demonstrates continuing personal interest in the
property and can either explain unusual items in the expense or income columns, or
assure the owner that operations were normal.
How do you calculate maximum, loan? - Answers - To calculate maximum loan, divide
annual debt service cost by loan factor.
What penalties may a person who is found guilty of falsely filing a fair housing complaint
receive? - Answers - A person who is found guilty of falsely filing a fair housing
complaint may receive a sentence of up to five years' imprisonment or be subject to a
$10,000 fine.
What can an on-site property manager negotiate with a prospective tenant to have
included in the lease agreement to ensure that the tenant is running a profitable
business? - Answers - A cancellation clause. New businesses'/tenants' leases usually
include a cancellation clause that the property manager can exercise if the business is
unable to pull in a certain gross volume.
What is a benefit to business owners for leasing instead of buying real estate for their
business? - Answers - Monthly rent is a tax deduction as a business expense.
, Edmund is a mortgage officer who closes loans. He is a Mortgage banker. - Answers -
Only the mortgage banker can close and fund loans.
Chandler, an investor, is relocating his company to Texas and applying for a tax
exemption under the Texas Economic Development Act. His company is eligible if the
tax exemption is a deciding factor on whether to do business in Texas. - Answers -
Companies for which the tax exemption is a deciding factor for doing business in Texas
can qualify for an exemption of up to 50% of total school property taxes each year. The
total exemption is granted is spread out over seven years.
What does REIT stand for? - Answers - Real Estate Investment Trust
Charlie, who owns and leases out a commercial building, pays taxes, maintenance, and
insurance on the building. What type of lease agreement does charlie have with his
tenants? - Answers - Gross lease. With gross leases, the landlord typically pays all
expenses, such as taxes, maintenance, and insurance.
Which is often evaluated in order to determine the purchasing power of consumers who
live in the area? - Answers - Median income. Median income is the income level that
separates the top 50% from the bottom 50% in income.
Which type of partner shares full personal liability for the partnership's debts and
obligations? - Answers - General. General partners share full personal liability for the
partnership's debts and obligations to the extent of their ownership.
Lendright Home Loans asks a trustee to begin foreclosure proceedings as permitted by
the power of the sale clause in the security investment. It does not need to involve the
courts. What type of foreclosure process is being used? - Answers - Non-judicial
foreclosure. Non-judicial foreclosures do not require court involvement.
What type of trust is created according to the terms of the will of a deceased person? -
Answers - Testamentary. A testamentary trust is one created according to the terms of
the will of a deceased person. Unlike living trusts, testamentary trusts don't avoid
probate.
Over how many years is a commercial property depreciated? - Answers - 39 years. A
commercial property depreciates over 39 years. Residential, income-producing
properties are depreciated over 27.5 years.
When calculating square footage in an office building, the hallways, lobby, basement,
elevators, and elevator shafts, and storage areas - are considered non-productive
space. - Answers - These areas are considered non-productive when it comes to
bringing in cash flow. However, they are also necessary parts of office buildings, so the
charges for them are built into the lease's base rate.
REVIEW
A Mortgage Banker gets paid fees from originating and serving loans. - Answers -
Conformity - Answers - Conformity says that value is created and maintained when the
characteristics of a property fit in with its surroundings.
A professional, on-site measurement of the lot lines and dimensions of a property is
known as a survey. - Answers - A survey includes the location of any improvements,
encroachments, and easements of public records.
Which element of a valid contract is established by getting the signatures of all parties?
- Answers - Offer and Acceptance. The signatures of the parties guarantees that they all
understand and agree to the terms of the contract.
In the early 2000's, before the 2007 financial crisis, how would you characterize the real
estate market? - Answers - Low interest rates and high property values. In the late
1990s and early 2000s, mortgage interest rates were low and property values were
high.
Burlingame Property Management sends a monthly earnings report to owner Juliann.
What is true of this report? - Answers - It should be accompanied by a personal note. A
note with the monthly earnings report demonstrates continuing personal interest in the
property and can either explain unusual items in the expense or income columns, or
assure the owner that operations were normal.
How do you calculate maximum, loan? - Answers - To calculate maximum loan, divide
annual debt service cost by loan factor.
What penalties may a person who is found guilty of falsely filing a fair housing complaint
receive? - Answers - A person who is found guilty of falsely filing a fair housing
complaint may receive a sentence of up to five years' imprisonment or be subject to a
$10,000 fine.
What can an on-site property manager negotiate with a prospective tenant to have
included in the lease agreement to ensure that the tenant is running a profitable
business? - Answers - A cancellation clause. New businesses'/tenants' leases usually
include a cancellation clause that the property manager can exercise if the business is
unable to pull in a certain gross volume.
What is a benefit to business owners for leasing instead of buying real estate for their
business? - Answers - Monthly rent is a tax deduction as a business expense.
, Edmund is a mortgage officer who closes loans. He is a Mortgage banker. - Answers -
Only the mortgage banker can close and fund loans.
Chandler, an investor, is relocating his company to Texas and applying for a tax
exemption under the Texas Economic Development Act. His company is eligible if the
tax exemption is a deciding factor on whether to do business in Texas. - Answers -
Companies for which the tax exemption is a deciding factor for doing business in Texas
can qualify for an exemption of up to 50% of total school property taxes each year. The
total exemption is granted is spread out over seven years.
What does REIT stand for? - Answers - Real Estate Investment Trust
Charlie, who owns and leases out a commercial building, pays taxes, maintenance, and
insurance on the building. What type of lease agreement does charlie have with his
tenants? - Answers - Gross lease. With gross leases, the landlord typically pays all
expenses, such as taxes, maintenance, and insurance.
Which is often evaluated in order to determine the purchasing power of consumers who
live in the area? - Answers - Median income. Median income is the income level that
separates the top 50% from the bottom 50% in income.
Which type of partner shares full personal liability for the partnership's debts and
obligations? - Answers - General. General partners share full personal liability for the
partnership's debts and obligations to the extent of their ownership.
Lendright Home Loans asks a trustee to begin foreclosure proceedings as permitted by
the power of the sale clause in the security investment. It does not need to involve the
courts. What type of foreclosure process is being used? - Answers - Non-judicial
foreclosure. Non-judicial foreclosures do not require court involvement.
What type of trust is created according to the terms of the will of a deceased person? -
Answers - Testamentary. A testamentary trust is one created according to the terms of
the will of a deceased person. Unlike living trusts, testamentary trusts don't avoid
probate.
Over how many years is a commercial property depreciated? - Answers - 39 years. A
commercial property depreciates over 39 years. Residential, income-producing
properties are depreciated over 27.5 years.
When calculating square footage in an office building, the hallways, lobby, basement,
elevators, and elevator shafts, and storage areas - are considered non-productive
space. - Answers - These areas are considered non-productive when it comes to
bringing in cash flow. However, they are also necessary parts of office buildings, so the
charges for them are built into the lease's base rate.
